ICE Canola Contracts Follow Outside Oilseeds Up
| 1 min read
| By Dwayne Klassen, Commodity News Service Canada |
| December 13, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at higher price levels at midsession with much of the upward price momentum associated with the strength exhibited by the outside oilseed markets, industry watchers said.
New highs established in Malaysian palm oil and European rapeseed futures overnight sparked some good demand for canola Strong domestic crusher demand contributed to the strength seen in canola with the pricing of old export business adding to the price advances, traders said. Fresh speculative buying interest also contributed to the upward price action seen in canola, traders said. They noted that funds were trying to see if technical resistance levels in canola can be penetrated. The upside in canola was tempered in part by scale-up elevator company hedge selling and by bouts of profit-taking from a variety of market outlets, brokers said. Some liquidation of long positions by speculative accounts, ahead of the Christmas and New Year’s holiday break was also evident, brokers said. There were an estimated 11,305 canola contracts traded at 10:42 CST. Of the contracts traded, 7,702 were spread related. There were no western barley futures traded as of 10:42 CST.
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